Poland may raise stake in copper miner KGHM- report

Reuters Staff

2 Min Read

WARSAW, March 23 (Reuters) - Poland may consider increasing its stake in copper producer KGHM to around 40 percent from the current 31.8 percent if it has the funds, the country’s treasury minister told Gazeta Polska.

“My dream is for example to raise the treasury’s stake in KGHM to a level close to 40 percent,” Dawid Jackiewicz was quoted as saying.

“For the time being it remains part of some plans and projects. But if proper funds come up I will consider such action.”

KGHM, which is Europe’s second biggest copper producer and one of the biggest employers in the south-west of Poland, has often been used by politicians to gain support among local communities.

KGHM has a market value of about 15.4 billion zlotys ($4.05 billion) and with its current share price at 77 zlotys, Poland would need almost 1.3 billion zlotys to increase its stake to 40 percent.

Poland sold a 10-percent of stake in KGHM in 2010 for over 2 billion zlotys as part of a broad privatisation plan.

Jackiewicz also said that he did not plan to merge Poland’s biggest lender PKO BP with the region’s biggest insurer PZU, but would support their plans to buy smaller rivals from foreign investors. ($1 = 3.7979 zlotys) (Reporting by Agnieszka Barteczko.)